[Introduced February 12, 1998; referred to the
Committee on the Judiciary; and then to the Committee on
Finance.]

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A BILL to amend chapter forty-six-a of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article four-a, relating
to regulating the business of purchasing the right to
receive the future payments from an annuity, court
settlement, lottery payoff, sweepstakes payoff or other
similar payment arrangement.

Be it enacted by the Legislature of West Virginia:
That chapter forty-six-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article four-a, to read
as follows:ARTICLE 4A. REGULATION OF BUSINESS OF PURCHASING RIGHT TO FUTURE

PAYMENTS.

§46A-4A-1. License required to engage in business of purchasing right to receive certain future payments;
submission of proposed legislation and rules.

(a) No person may engage in the business of purchasing the
right to receive the future payments from an annuity, court
settlement, lottery payoff, sweepstakes payoff or other similar
payment arrangement without a license issued by the banking
commissioner.
(b) The commissioner shall prepare suggested legislation the
commissioner determines reasonable and necessary or convenient to
adequately regulate the business of purchasing the right to
receive the future payments from an annuity, court settlement,
lottery payoff, sweepstakes payoff or other similar payment
arrangement and submit it to the joint committee on government
and finance no later than the first day of December, one thousand
nine hundred ninety-eight. The commissioner shall propose rules
for legislative approval in accordance with the provisions of
article three, chapter twenty-nine-a, the commissioner determines
reasonable and necessary or convenient to regulate the practice
of purchasing the right to receive future payments from an
annuity, court settlement, lottery payoff, sweepstakes payoff or
other similar payment arrangements. The proposed legislation and
rules shall include, at a minimum, provisions:
(1) Protecting citizens from unreasonable business tactics
and pressures involved in the business;
(2) Establishing reasonable guidelines for regulating those entities engaged in the business to ensure that the purchase
price is the present value of the amount of the future payments
to be received, minus a reasonable profit, considering the risk
that all future payments may not be received;
(3) Establishing procedures for issuing, renewing, revoking
and rescinding licenses; and
(4) Establishing fees for issuing and renewing licenses.
(c) The commissioner may not issue a license to allow a
person to engage in the business of purchasing the right to
receive the future payments from an annuity, court settlement,
lottery payoff, sweepstakes payoff or other similar payment
arrangement until the rules submitted in accordance with this
section are approved by the Legislature.

NOTE: The purpose of this bill is to provide for the
regulation of the business of purchasing the right to receive the
future payments from annuities, court settlements, lottery
payoffs, sweepstakes payoffs or other similar payment
arrangements.

This article is new; therefore, strike-throughs and
underscoring have been omitted.